US demand to grow 4.8% per year through 2009
Demand for protective coatings in the US is forecast to rise 4.8 percent per year to $4.8 billion in 2009. In general, higher value coatings -- especially those that provide multiple functions, exhibit favorable environmental profiles or are used in niche applications -- will offer the best opportunities.
Products that will post the most rapid gains include fire-resistant, anti-graffiti and conformal coatings, although research and development efforts will provide opportunities for most products to some degree. Fire-resistant coatings, for example, will experience greater use due to the introduction of improved formulations that allow coated metal to be used in a greater number of building designs, as well as greater safety concerns regarding the structural integrity of metal in fire situations.
In corrosion control, coil coating formulations that provide not only corrosion resistance, but also antimicrobial properties or textures will see greater use.
Machinery, aerospace, electronics production to drive durables sector
Protective coatings are indispensable in the production of various durable goods, particularly those with metal substrates. As such, protective coating demand will benefit from an acceleration in durable goods shipments, as the manufacturing sector continues to recover from the recessionary 2001 period. The most favorable opportunities will arise in industrial machinery and equipment, aerospace equipment and electronics, although the potential displacement of coated metal by alternative materials (particularly plastics) in certain durable goods will offset some of these gains.
Improvements, new construction to benefit maintenance end uses
In industrial maintenance end uses, protective coating demand will benefit as US firms invest in the improvement and maintenance of existing facilities and equipment. In addition, demand will also be promoted by a significant acceleration in industrial construction expenditures, where spending is rebounding from declines during the 1999-2004 period. The introduction of more efficient coating formulations during the 1990s will limit growth somewhat, as the use of these formulations extends the period between regular maintenance.
Bridges, decks, fences to support gains in construction market
In construction end uses, protective coating demand will be spurred by the aging of the bridge inventory and relatively frequent maintenance requirements for the large installed base of decking and fencing. Limiting gains will be a gradual shift to materials that require less maintenance such as woodplastic composites, vinyl and polyethylene.
Study coverage
Protective Coatings is a new Freedonia industry study, provides historical US demand data (1994, 1999, 2004) plus forecasts to 2009 and 2014 by product and end use. This study also evaluates US market share data and profiles 35 industry competitors. | 
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